The warnings (first three options) will appear when attempting to use a Customer that has already exceeded their Credit Limit (set on the 'Terms' card of the Customer record). Saving (next three options) will not be allowed if the transaction will take the Customer over their credit limit. The next four options are only used if the Cheques module is present. All these options compare the Customer's Credit Limit with their unpaid Invoice total (Open or Due, as specified below). The final option compare the Customer's Credit Limit with their unpaid Invoice total and their unfulfilled Order total.

Three methods are available by which the credit status of a Customer can be calculated:

Open and Due: The outstanding total from all unpaid Invoices will be compared with the Customer's Credit Limit.
Due only: The outstanding total from unpaid Invoices that have exceeded their Payment Terms only ('Due' Invoices) will be compared with the Customer's Credit Limit. For example, if a Customer has Payment Terms of 30 days, Due Invoices are those that have been outstanding for more than 30 days.
Open only: If there are any Due Invoices, the Customer will immediately be said to have exceeded their Credit Limit, irrespective of the value of those Invoices. If there are no Due Invoices, the outstanding total from unpaid Invoices that have not exceeded their Payment Terms only ('Open' Invoices) will be compared with the Customer's Credit Limit.

Credit checking will not take place if the Customer has not been given a Credit Limit.

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